Weekly focus: Investment outlook 2019




Positioning for late-cycle growth


Politics, trade conflicts, and concerns about higher interest rates dominated 2018 and are bound to affect 2019 as well. However, the economic cycle will remain the key driver of markets. Although growth is likely to slow in 2019, we believe that the momentum is solid enough to support further economic expansion.


Typically, in late stages of past expansions, equities have outperformed other asset classes, while bond yields have risen and yield curve flattened. We, therefore, maintain a growth tilt in our strategy and recommend a small overweight in equities. While being mindful of risks, we also favor uncorrelated and convex return strategies. Our key investment themes for 2019 are interest rate normalization; regional economic divergence; and new geopolitical regimes.











Important Information:


This part of the material: (i) aims to provide macro-market commentary; (ii) does not contain any statements or advice in relation to any specific marketable security or financial product; and (iii) does not take into account your personal circumstances and should not be treated as any form of regulated financial advice, legal, tax or other regulated service.